Armstrong Profit Drops on Slightly Lower Sales
Lancaster, PA, April 29, 2013 --Armstrong World Industries reported first quarter net income of $3.2 million, down 83% from $19 million in the same quarter last year.
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However, net sales edged down 2% to $622.3 million from $636 million.
Sales were down about $9 million due to the sale of the Patriot wood flooring distribution business, Armstrong said.
"We delivered first quarter results in line with the expectations we outlined earlier this year, despite a continued choppy commercial market environment," said CEO Matt Espe.
Earning were affected by tax rate issues and costs related to refinancing of debt.
The sales decline was also driven by lower commercial volumes, which more than offset gains in new residential construction that resulted in strong volume growth in the wood flooring business.
Price and mix were both positive, Armstrong said, but only partially offset the impact of lower volumes.
The resilient flooring unit had sales of $214.8 million, down from $227.3 million a year ago.
Wood flooring sales rose to $114.7 million from $105.6 million.
Armstrong said shipments for solid wood products hurt as orders outpaced production in the quarter. The company said it is adding additional crews at several solid wood plants.